HCEO instructed to enforce HC Writ against Limited Company

[HCEOs]

The HCEO would need to liaise with the creditor as to any settlement offer.

 

Given that the HCEO has applied various fees (for what you don't now yet - this should have been provided as it is very straight forward now) it is likely that these will be deducted from any settlement, either in full or in part if agreed with the creditor.

 

And as BRIGADIER2JCS rightly says, if paid in full or with a settlement, the CCJ will not be removed from your credit file, it will merely be marked as satisfied.

[Jameson78]

Thanks BRIGADIER2JCS and HCEO

 

I have emailed the HCEO and requested a breakdown of charges to be sent over.

 

Once I have that, I will make a settlement offer and see what they say.

 

My calculation is that they do not have an address for the business that they can enter and remove goods. They have tried once and they already have confirmed that the new office is just a virtual office and there are no other addresses listed.

 

The CCJ is on the company file, so the damage is done. What else could they do? I suppose wind the company up, which is always an option, but not sure of the costs for them to do that. My hope is that they will take a settlement or a short repayment option and close the matter.

 

Do I need to contact the court and tell them I acknowledge the debt?

[Jameson78]

I have a question,

 

What happens if I don't pay?

 

The company has no assets or income - it's just a website.

 

The business account can be closed, I have no overdraft.

 

I have a whole list of costs incurred in setting up the business but I can reach a grand total and sell it to a new limited company.

 

The contract with the magazine was signed between myself and the creditor (Not the director of the company).

 

I want to incorporate another limited company which will but the existing website and on we go.

 

The CCJ is under the company name. The company is a year old and no accounts have been filed, they are due by May next year.

 

I have no income, just costs.

 

Is it really that simple?

[Bailiff Advice]

I think that you have answered your own question !!!

 

I am sure that the enforcement company do not consider their chances of getting a full recovery from this debt is likely.

[Jameson78]

HCEO has admitted in its report that they cannot find the address of the director and the companies house resisted/business address is a virtual office

 

"We do not hold a current address on file for the debtor and are therefore liaising with him by e-mail in an attempt to

prompt payment."

"The debtor has provided us with the an alternative address for the company: xxx ___________ xxx_______xxx xxx.

Searches carried out using Google confirm that this address is a virtual office address, occupied by XXXX XXXX XXX

Ltd.

It is unlikely that there will be any assets belonging to the debtor company at this address.

We now await details of how this debt was incurred to enable us to liaise with the debtor company Director further."

 

If I close the company, then is that it, they cannot chase anyone for this? I just need to be sure, thanks

[Jameson78]

Could I even ask the HCEO to wind up the company, will be easier and cheaper I suppose?

[Bailiff Advice]

Could I even ask the HCEO to wind up the company, will be easier and cheaper I suppose?

 

NO way...

 

His role is purely to enforce the writ. A winding up petition costs a huge sum of money and this was why they are normally only used by the likes of HM Revenue & Customs.

[Jameson78]

Okay thanks,

What I think I will do is send a stop trading letter to the HCEO, wait three months and send a DS01 to companies house and the HCEO

I will incorporate another Limited comp and set up a bank account same day.

I don't have any other creditors, other than the HCSO.

 

The costs incurred with the website I will place value and place as a cost to the new limited company I will incorporate. The Limited company has no words or names associated with the website name.

 

That should put an end to the enforcement. I suppose they could place a trace on the director house, but there are no assets belonging to the company and as long as we don't let them in...

 

But I am hoping the stop trading letter will send the message that this is the end and it's not worth enforcing.

 

Is there anything else i need to think of?

[Jameson78]

Any templates you would suggest I use?

[Jameson78]

Morning,

Can someone please help me with the content of the letter I want to write to my bank and HCSO informing them I am ceasing to trade.

Is there any special wording or acts I must quote?

Thanks

[Bailiff Advice]

Just a simple email is all that should be needed to advise that the company has ceased trading.

 

The creditor will then be liable to pay the Compliance Fee of £90 to the enforcement company. He will not be liable for any other fees.

[Jameson78]

I obviously have a few loose ends to tie up - do you advise I send the email with a date in the very near future, say 2 weeks time, or simply wait and send the letter (email) as a fact the company has ceased trading?

[Jameson78]

This s how I understand the process after reading a few threads:

 

1. I email my bank and HCSO and tell them the debt is higher than the asset value and there is no income stream, and never has been any income and so the company cannot carry on its business.

2. We stop trading.

3. After 3 months we fill in form DS01 and with £10 fee send to Companies House.

4. Everything complete.

 

Is this assessment correct?

[Bailiff Advice]

This s how I understand the process after reading a few threads:

 

1. I email my bank and HCSO and tell them the debt is higher than the asset value and there is no income stream, and never has been any income and so the company cannot carry on its business.

2. We stop trading.

3. After 3 months we fill in form DS01 and with £10 fee send to Companies House.

4. Everything complete.

 

Is this assessment correct?

 

I am not an accountant and therefore not familiar with the process. I think from your earlier post that the enforcement company are already aware that the debt is not one that is likely to generate payments so the quicker that you advise them the debtor. Keep the email brief.

[Jameson78]

According to companies house website, the £10 fee must NOT be sent using the company account.

 

Ok, I got it.

 

Thanks

[Swoosh84]

Dear Sirs,

 

Re XXXXXXXX Ltd

 

It is with deep regret that I must inform you that the above company has ceased trading due to becoming insolvent. The difficult decision to cease all trading activities has been forced upon me so as to comply fully with my responsibilities in law as a company director.

 

Unfortunately the company has insufficient realisable assets and no funds with which to appoint an insolvency practitioner and thereby initiate a voluntary liquidation. I am not in a financial position to fund this personally, having now lost my livelihood.

 

The company therefore, will now lie in a state of ‘limbo’ until either Companies House strike it from the register or a creditor winds it up through the High Court, leading to the Official Receiver being appointed as liquidator. As you are a creditor of the company I would ask that you consider taking this step so as to bring about the early resolution of the company’s affairs.

 

Yours faithfully,

 

 

 

Director

XXXXXXXXX Ltd

[Bailiff Advice]

Dear Sirs,

 

Re XXXXXXXX Ltd

 

It is with deep regret that I must inform you that the above company has ceased trading due to becoming insolvent. The difficult decision to cease all trading activities has been forced upon me so as to comply fully with my responsibilities in law as a company director.

 

Unfortunately the company has insufficient realisable assets and no funds with which to appoint an insolvency practitioner and thereby initiate a voluntary liquidation. I am not in a financial position to fund this personally, having now lost my livelihood.

 

The company therefore, will now lie in a state of ‘limbo’ until either Companies House strike it from the register or a creditor winds it up through the High Court, leading to the Official Receiver being appointed as liquidator. As you are a creditor of the company I would ask that you consider taking this step so as to bring about the early resolution of the company’s affairs.

 

Yours faithfully,

 

 

 

Director

XXXXXXXXX Ltd

 

One word.....EXCELLENT!!!!

[BRIGADIER2JCS]

Dear Sirs,

 

Re XXXXXXXX Ltd

 

It is with deep regret that I must inform you that the above company has ceased trading due to becoming insolvent. The difficult decision to cease all trading activities has been forced upon me so as to comply fully with my responsibilities in law as a company director.

 

Unfortunately the company has insufficient realisable assets and no funds with which to appoint an insolvency practitioner and thereby initiate a voluntary liquidation. I am not in a financial position to fund this personally, having now lost my livelihood.

 

The company therefore, will now lie in a state of ‘limbo’ until either Companies House strike it from the register or a creditor winds it up through the High Court, leading to the Official Receiver being appointed as liquidator. As you are a creditor of the company I would ask that you consider taking this step so as to bring about the early resolution of the company’s affairs.

 

Yours faithfully,

 

 

 

Director

XXXXXXXXX Ltd

 

 

Nothing wrong with that in my opinion.

 

 

Is there a creditor owed sufficient to prompt a winding up?

[Swoosh84]

From reading the thread the only creditor is the Advertising Company/HCEO and with a debit of £944.00. Its extremely unlikely that they will initiate winding up proceedings as it will cost in excess of this amount and there is little hope of them securing the original sum back let alone the winding up fees.

 

The original poster needs to cease trading for 3 months and then submit a DS01, chances are there will be an objection to the strike off by either the HCEO or HMRC. If that's the case then they will need to wait a further 3 months and submit the DS01 again. They can keep objecting but unless they take it further (extremely unlikely) companies house will eventually strike the company off regardless.

[Jameson78]

Thank you Swoosh,

Letter sent by email today.

 

I have stopped trading and working on the final accounts now.